Correlation Between Western Asset and 88579YBK6
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By analyzing existing cross correlation between Western Asset Investment and 3M CO, you can compare the effects of market volatilities on Western Asset and 88579YBK6 and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Western Asset with a short position of 88579YBK6. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Asset and 88579YBK6.
Diversification Opportunities for Western Asset and 88579YBK6
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Western and 88579YBK6 is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Western Asset Investment and 3M CO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 88579YBK6 and Western Asset is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Western Asset Investment are associated (or correlated) with 88579YBK6. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 88579YBK6 has no effect on the direction of Western Asset i.e., Western Asset and 88579YBK6 go up and down completely randomly.
Pair Corralation between Western Asset and 88579YBK6
Considering the 90-day investment horizon Western Asset Investment is expected to generate 0.3 times more return on investment than 88579YBK6. However, Western Asset Investment is 3.35 times less risky than 88579YBK6. It trades about -0.05 of its potential returns per unit of risk. 3M CO is currently generating about -0.07 per unit of risk. If you would invest 1,682 in Western Asset Investment on September 4, 2024 and sell it today you would lose (8.00) from holding Western Asset Investment or give up 0.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 80.95% |
| Values | Daily Returns |
Western Asset Investment vs. 3M CO
Performance |
| Timeline |
| Western Asset Investment |
| 88579YBK6 |
Western Asset and 88579YBK6 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western Asset and 88579YBK6
The main advantage of trading using opposite Western Asset and 88579YBK6 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Asset position performs unexpectedly, 88579YBK6 can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in 88579YBK6 will offset losses from the drop in 88579YBK6's long position.| Western Asset vs. Pioneer Floating Rate | Western Asset vs. The Gabelli Equity | Western Asset vs. Pioneer Municipal High | Western Asset vs. Nuveen Global High |
| 88579YBK6 vs. The Travelers Companies | 88579YBK6 vs. GE Aerospace | 88579YBK6 vs. Walmart | 88579YBK6 vs. Pfizer Inc |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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